• The Group's investments totalled €510.2 million.
• The dividend for the 2017 financial year proposed to the General Shareholders' Meeting will amount to €0.9188 per share, 7% more than was paid in 2016.

In 2017, the Red Eléctrica Group obtained a profit of €669.8 million compared to €636.9 million the previous year. The containment of operating costs, owing to the efficiency strategies carried out by the Company, as well as the improvement of financial results as a result of the decrease in financing costs, have allowed profit for the year to grow by 5.2% year-on-year.

The Company's annual results are in line with the objectives of the 2014-2019 Strategic Plan, as explained by the CEO, Juan Lasala, in the year-in-review speech he gave today during the presentation of the annual results to analysts and investors.

The Group's investments totalled €510.2 million, of which €411.8 million were earmarked for the development the national transmission grid, a value 3.3% higher than the amount earmarked last year. At the end of 2017, complying with the established deadlines, Transmisora ​​Eléctrica del Norte (TEN) commissioned the line that interconnects Chile’s North and Central electricity systems.

Revenue for 2017 increased to €1,941.2 million. This figure includes the regulated revenue for system operation and power transmission in Spain, as well as revenues associated to telecommunications services provided and those linked to international activity.

Gross operating result (EBITDA) reached €1,519.5 million, representing a growth of 2.3% year-on-year. This evolution is a consequence of the containment of operating costs compared to those registered the previous year and of the efforts that the Company is carrying out in terms of efficiency.

Financial profit (loss) showed an improvement of €8.7 million, going from €-151.3 million in 2016 to €-142.6 million in 2017. The improvement seen is mainly due to paying less interest thanks to a fall in the Company's financing cost which in 2017 stood at 2.78% compared to 2.94% the previous year.

Net financial debt of the Red Eléctrica Group stood at €4,791.8 million, a figure 3.2% lower than that registered in 2016.

Income statement

Progress in the objectives of the 2014-2019 Strategic Plan

During the presentation of the results to analysts and investors, the CEO of Red Eléctrica, Juan Lasala, highlighted the progress made during 2017 and the achievements of the Plan to date.

At the end of 2017, investments in the development of the transmission grid in Spain and the management of fibre optic networks stand at 49% of what is foreseen in this Plan, while, for its part, over 60% of the investments foreseen in the area of diversification have already been carried out or are earmarked

Juan Lasala also highlighted the progress made by Red Eléctrica in terms of efficiency, which has has allowed the average growth in net profit in the 2014-2017 period to stand at 6.1%, in line with that foreseen in the Strategic Plan. Shareholder remuneration continues to be among the Company's key objectives, with a dividend per share of €0.9188 being proposed to the General Shareholders' Meeting, which represents an increase of 7% over the previous year, a figure that is in line with that set out in this Strategic Plan.

Lastly, the CEO made a reference to the Company’s long-term challenges. The goals of the Paris Agreement of December 2015, or those that will be included in the future climate change law aimed at achieving a sustainable future, confirm the key role of electricity grids. For this, it will be necessary to provide regulatory stability to the electricity sector and ensure an adequate return on investments that allow the transition of the energy model.

Other relevant events

• On 28 December, Red Eléctrica put out a call to tender for the construction engineering of the Soria-Chira reversible hydroelectric power station in Gran Canaria. The contract is expected to be awarded in May, and it will be one of the primary milestones of the construction of what is an essential facility for the new energy model on the Canary Islands.
• On 21 December, Red Eléctrica transformed its 800 million euro syndicated credit, signed in 2014, into green financing. This transaction is the first sustainable syndicated credit in the electricity sector and its terms and conditions are linked to the Company's credit profile and the performance of ESG (Environmental, Social and Governance) parameters, pursuant to the rating given by the sustainability rating agency Vigeo Eiris.
• On 1 December, the Red Eléctrica Group, through its subsidiary Red Eléctrica del Sur, S.A. (Redesur), was awarded the construction of the Tintaya-Azángaro transmission line in Peru. The new line, which will run through the south of the Andean country, will be 128 km in length and will require a total investment of 55 million dollars (around €44.6 million). The concession contract will be for a period of 30 years plus the construction period, which is expected to last 40 months.
• Also, at the end of November, the company Transmisora ​​Eléctrica del Norte (TEN), in which the Red Eléctrica Group holds a 50% stake, commissioned the 500 kilovolt Mejillones-Cardones line which is 600 km in length. With a total investment of 800 million dollars (about €648 million), the line is of paramount importance for Chile, since it will connect the North and Central electricity systems of the country for the first time.

The Press Office of Red Eléctrica publishes all written and audio-visual information via the Twitter account @RedElectricaREE.

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